LONDON (Reuters) – British online fashion retailer ASOS said it expected adjusted earnings to rise by at least 60% in its 2025 financial year, after a turnaround plan focused on ditching discounting and improving its products gained traction.
ASOS has been trying to reinvent itself after its trendiness appeal waned and it became bogged down with excess stock, but it faces intense competition from lower cost Chinese-founded fast fashion giant Shein and Chinese online retailer Temu.
The company said in September the plan to prioritise profitable growth over sales volumes was working, when it guided that annual adjusted earnings for its 2024 financial year would come in at the top end of consensus.
For its current financial year to September 2025, ASOS said on Tuesday that it expected adjusted earnings (EBITDA) to come in at between 130 million and 150 million pounds, up from the 80 million pounds it reported for last year.
“Our product is now in the strongest position it has been in years, with the right level of newness to excite customers, and we have fundamentally improved our profitability through a relentless focus on operational efficiency,” ASOS Chief Executive Jose Antonio Ramos Calamonte said in a statement.
ASOS in October completed the partial sale of its Topshop and Topman brands to Heartland, the holding company of Danish billionaire Anders Holch Povlsen, in a deal valuing them at 180 million pounds.
(Reporting by Sarah Young; Editing by Sachin Ravikumar)
